View full sizeCrews from Bierlein demolished the Industrial Brownhoist buildings along the Saginaw River in 2009. Bay City plans to knock down between two to three homes using community development block grant funds within the next year, officials say.File | MLive.com

BAY CITY, MI — Since Debbie Kiesel joined Bay City Hall 18 years ago, the Neighborhood Services coordinator has watched the community development block grant program funds gradually erode.

This year, the U.S. Department of Housing and Urban Development-funded program likely will see a 5.2 percent decline from 2012, she said.

And worse could be around the corner.

“They’re already talking about huge cuts next year,” she said. “It’s very possible it could be bigger than a 5 percent reduction.”

Kiesel next week will submit to city leaders the proposed budget for the next round of community development block grant monies, even though federal officials have yet to finalize the dollar amount.

The tentative grant is $1,043,704, down from the $1,098,636 approved last year.

The Bay City Commission could approve the proposal at its 7:30 p.m. Monday, April 15 meeting at the Pere Marquette Depot, 1000 Adams.

“This program has been around for 30 years,” Kiesel said. “At one point, we received $1.8 million. We’re definitely running behind.”

What funds the city still receives helps with housing development programs along with some public safety initiatives.

The largest line item on the proposed grant budget is $322,332 for the city’s emergency weatherization/rehabilitation program.

Kiesel said the initiative allows low-income homeowners caught up on tax payments to qualify for loans that pay for work on roofing, plumbing, heating and hot water tank issues.

While the last block grant doesn’t expire until July, the program has helped rehabilitate from 35 to 40 homes to date, she said.

Other housing funds include $40,800 for demolition — enough to knock down two to three blighted homes, Kiesel estimates — and $193,467 to Bay Area Housing for the Bay City non-profit housing program's various home rehabilitation measures.

The second-to-largest chunk of the proposed block grant funds is $216,740 for Bay City administration costs.

Kiesel said the money helps pay for staff salary, liability insurance, along with advertising and printing costs associated with the block grant initiatives.

Public safety also brings in dollars from the program. The block grant could send $156,556 to the merged Bay City police and fire departments, to fund both community policing and fire awareness programs, she said.

Another $150,000 is proposed for the annual sidewalk program, which allocates dollars to repair sidewalks in a different district every year. Kiesel said the 2nd Ward is the target of this year’s proposal.

Just as the block grant proposal allocation isn’t set in stone, neither is the way each dollar is divided among the programs.

Kiesel said commissioners in the past have voted to alter the proposal before passing the budget.